EUROMONEY TAX HANDBOOK 2013

How is South Africa responding to growing concerns about base erosion? br>rnSouth Africa, influenced by international tax developments, has proposed new measures that seek to address perceived base erosion problems, whilst at the same time it tries to position itself as a `Gateway to Africa`. From a tax policy perspective, base erosion becomes a concern for national tax authorities when gaps in the interaction of different tax systems, or the application of bilateral tax treaties, allow for income from cross-border activities to result in either non-taxation or unduly low taxation. The term `base erosion` includes tax evasion, tax avoidance, tax underestimation and population flight.